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Amaroq Minerals Ltd. (CVE:AMRQ) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 15% resulting in a CA$88m addition to the company’s market value. In other words, the original CA$4.14m purchase is now worth CA$6.08m.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Amaroq Minerals
The Last 12 Months Of Insider Transactions At Amaroq Minerals
Over the last year, we can see that the biggest insider purchase was by Independent Non-Executive Director Sigurbjorn Thorkelsson for CA$3.4m worth of shares, at about CA$1.25 per share. We do like to see buying, but this purchase was made at well below the current price of CA$1.80. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Over the last year, we can see that insiders have bought 3.38m shares worth CA$4.1m. On the other hand they divested 83.12k shares, for CA$100k. In total, Amaroq Minerals insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Amaroq Minerals is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insiders At Amaroq Minerals Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at Amaroq Minerals. Not only was there no selling that we can see, but they collectively bought CA$381k worth of shares. This is a positive in our book as it implies some confidence.
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It appears that Amaroq Minerals insiders own 7.6% of the company, worth about CA$50m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Amaroq Minerals Insider Transactions Indicate?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in Amaroq Minerals shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Amaroq Minerals. When we did our research, we found 2 warning signs for Amaroq Minerals (1 is a bit concerning!) that we believe deserve your full attention.